On January 1,2018,a Company Issues 3-Year Bonds with a Face

question 239

Essay

On January 1,2018,a company issues 3-year bonds with a face value of $50,000 and a stated interest rate of 7%.Because the market interest rate is 5%,the company receives $52,723 for the bonds.
Required:
Part a.Determine the interest expense,the cash payment for interest,and the amount of the premium that will be amortized during the year ending December 31,2018.
Part b.Prepare the journal entry to record the first interest payment on December 31,2018.

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Definitions:

Criticisms

The expression of disapproval based on perceived faults or mistakes, or the analysis and judgment of the merits and faults of a literary or artistic work.

Motor Development

The progressive acquisition of skills involving movement, such as grasping, walking, and coordinated physical activity, typically seen in infants and children as they grow.

Developmental Norms

Standardized milestones that describe the typical sequence and timing of developmental progress in various domains.

Infancy

A developmental period in humans that spans from birth to 18-24 months, characterized by rapid physical, cognitive, and emotional growth.